Shariah Mortgages

What is Shariah finance?

Shariah finance principles are derived from Islamic teachings and encourage fairer, ethical, socially responsible ways of conducting financial affairs. Principally the charging of ‘interest’ is not permitted in Shariah compliant financing. There are several types of shariah finance structures such as Mudarabah, Murabaha and Musharakah.

Aside from not charging interest the bank that enters into a Shariah compliant agreement with a customer, would be an institution that follows ethical practices and does not invest or support companies such as Certain Enterprises involved in; Food & Drinks, Gambling, Pharma & Tech, Tobacco and Entertainment industries.

Shariah Compliant Financing Plans

If you are working and living overseas and you want to buy in the UK as a first time landlord, first time buyer then considering Shariah finance may be a good fit. With Ethical principles and the highest standards of UK banking regulation there are very good reasons to consider what Shariah finance plans can offer.

Alternatively if you already own property and have strict Shariah requirements, refinancing existing property holdings and reinvesting could be well within reach, enabling you to grow your investments and plan for the future.

Additionally if you don’t have a UK/EU passport and also no rights to reside in the UK, then it maybe that Shariah Finance providers are the best option to seek for your UK property investment requirements.

Key Features

  • Borrow up to 75%
  • Profit rates from 3.1%
  • 2 & 5 Yr fixed deals available
  • No Early Redeem fees
  • Ltd Company lending
  • First Time Buyers considered
  • Overseas Nationals and Expats welcomed

Can anyone apply for Shariah Finance agreements?

Yes, provided applicants meet the criteria of the bank, there is no requirement to be of a certain religion, faith, background or nationality to access Shariah compliant products.

Additionally UK lenders that offer Shariah products can assist clients from all walks of life and also many of these banks can help Expats and International Non UK/EU national clients, which is a great advantage compared to other high street banks that do not provide this flexibility or approach.

How do Shariah Compliant Mortgages work?

A Shariah mortgage is a joint venture with the client providing their stake (deposit) and the bank providing their stake (mortgage). Both the client and the bank become beneficial owners relevant to the % stake they place into the deal.

Interest is replaced by the client paying monthly payments which are termed leasing or renting until they have reduced the banks equity stake in the property to become the full owner.

Shariah Bridging Loans

There can be a number of reasons why someone needs to access bridging finance, however it has been Extremely difficult to obtain bridging finance under Shariah Compliant rules, however we have exclusive arrangements with providers who can help clients with their urgent Shariah bridging needs.

Here are some reasons why Bridging may be a requirement:

  • Purchase other property while waiting for existing property to sell
  • Buy property at Auction where speed is essential
  • Developing un-inhabitable property
  • Commercial & Semi-Commercial also considered security
  • Raise funds for short term business uses
  • Buying land to obtain planning on
  • Buying other multiple properties
  • Buying other un-mortgageable assets

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for mortgage advice and information

0044 (0) 7456 727 626